Compass’ secret bonus $8.9m school lunch contract

A school lunch described as “unidentifiable pasta ball and lentils”. (Image: NZME)

Thu, 13 Feb 2025

When Associate Education Minister David Seymour launched his alternative school lunch programme last year, the spotlight was on the $3 per meal deal leading to a trumpeted $130 million saved annually. Health experts and suppliers who lost contracts to a consortium led by multinational Compass Group were sceptical that a nutritious meal could be achieved at that price, down from the $5.56 to $8.29 spent previously depending on meal size. Turns out they may have had a point as new details emerge about extra costs creeping up after a sha...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On the Money: Du Val, Kathmandu, Fonterra, and more

A Du Val comedy, dairy politics, and a copied signature.

Dileepa Fonseka 5:00am

Technology Review

Samsung Galaxy Z Fold7: Slimmer and sharper

When I first got Samsung’s original Galaxy Z Fold, it felt like a momentous occasion.

Peter Griffin 5:00am

Samsung Galaxy Z Fold7: Slimmer and sharper

Opinion

Simon Robertson: On asset allocation

Why I only own US stocks.

Simon Robertson 5:00am

Sponsored

Why New Zealand organisations need to rethink their cloud strategy

New Zealand organisations have embraced cloud computing over the past decade, but many are now confronting a sobering reality: adoption alone isn’t enough. According to Datacom’s 2025 Cloud & Infrastructure Report, only half of New Zealand businesses say they’ve realised the benefits they expected from cloud – despite significant investment.

Datacom

Sponsored